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Operating Expenses are expenses that are incurred while running a business. Maintenance Expense could be considered anything from the cost of maintaining a company vehicle to repairs made on a building or some other type of "maintenance" that is require by the business in order to function at 100%.
Many expenses have their own account such as, Utilities Expense, Rent Expense, Insurance Expense, Interest Expense, Supply Expense, just to name a few. Other expense may not have a specific account in which to be recorded, such as Travel Expense, Food Expense (perhaps to entertain a possible client), these expense are often listed under "Other Expenses".
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The amount a business earns over and above what it spends for salaries and other expenses is called?
profit
What is non operating holding company?
A non Operative Finantial holding company only invest money in other companies .They do not take part in day to day operation .Holding CompaniesThe primary function of a holding company is to invest in other companies, commonly known as subsidiaries. Holding companies are usually not involved in day-to-day operations of the operating company, but lend initial or ongoing financial support via cash reserves or stock sales, and may assist in restructuring the operational model to ensure profits. Holding companies are normally structured as corporations to protect assets, absorb financial losses and limit liability. Operating CompaniesOperating companies are owned by the holding company, but are responsible for all day-to-day operations of the company. When a holding company creates or purchases an operating company, they are sometimes allowed to conduct business as usual -- especially if they are profitable. Net profits after expenses are then handed over to the holding company.
Define external growth?
External growth refers to a company buying or merging with other companies in order to expand their business. There are numerous companies that do this to add more products to their company.
What is the definition of solvent association?
It means an association is in good financial standing with dues paid by members being more than the maintenance, insurance, and other budgeted items, thus having a surplus of funds.
What is the meaning of multinational corporation here in Philippines?
The meaning of multinational corporation in Philippines is same as it is in other countries. A multinational company is an enterprise operating in several countries with its headquarter in its home country.
How to prepare a income statement?
Sales - cost of goods sold = gross profit. - operating expenses(i.e marketing expenses and administrative expenses) = operating income. + other income - other expenses = income before tax - tax = net income/profit.
What kind of asset preliminary expenses?
Preliminary expenses are expenses prior to start of operating activity and shown in assets side as an other assets.
Is gross profit same as operating profit?
Gross profit and operating profits are two different values as gross profit only cater direct expenses to produce goods while operating profit is calculated after deducting indirect expenses and selling and administration overall called operational expenses to arrive at operating profitExample:Sales xxxxLess:Purchases xxxxGross Profit xxxxLess:Selling Expenses xxxxAdmin Expenses xxxxother expenses xxxxOperating Profit xxxxxIf there is no selling, admin or other expenses then gross profit and operating profit will be same.
Formula for net operating expenses?
operating exepnces = (total admn expences+depreciation(+/- interest and other bank charges)(+/-gross profit))
What is per hour cost to operate a Boeing 757?
2680 dollar(Fuel+other expenses such as maintenance)
Define cash break?
Cash break simply defines where a business stands when comparing sales to expenses. You subtract costs and other expenses from the total sales to show the cash break.
What is gross operating expense?
Gross operating expense is the total amount of money spent by a company to operate its business, including costs such as salaries, rent, utilities, supplies, and other day-to-day expenses. It does not include taxes or interest expenses.
What are the daily expenses of operating a thrift shop?
The daily expenses of operating a thrift store tend to be the same as other stores, with the exception of inventory. Such expenses include staff, rent, utilities. The difference between a thrift store and other stores is that inventory is usually donated. Also, some thrift stores primarily use volunteers instead of staff but even in that case the manager is usually paid.
What is gross expenses?
Gross operating expense is the cost something needs to be operated without tax or other contributions being deducted.
What is general expenses and whether it is asset or liability?
Answer:The income statements shows the breakdown of the expenses. The various main expense items of operating income are: cost of revenues/goods sold, R&D expenses, sales and marketing expenses. All other expenses are general expenses (administrative, overhead, etc). General expenses, just like any other expenses, are neither an asset, nor a liability.General expenses can be the result of a decline in the value of an asset (payment of cash, depreciation of value of an asset), or an increase in a liability (electricity bills payable, etc).
What is the difference between operating account and reserves account for HOA in Illinois?
An operating account is used for day-to-day expenses of the HOA, such as maintenance, repairs, and utilities. It is funded by monthly dues and other regular income. A reserves account, on the other hand, is specifically designated for major repairs and replacements, such as roof replacements or pavement repairs. This account is funded by setting aside a portion of the monthly dues into a separate reserves fund to ensure that there are sufficient funds available for these larger expenses when they arise.
Does sales minus cost of merchandise sold minus operating expenses plus or minus other income and expense equal net income?
Yes.
